The New Markets Tax Credit (NMTC) Program serves as a powerful catalyst for economic revitalization throughout Illinois, from Chicago’s South and West sides to the agricultural communities of Southern Illinois and the former industrial centers along the Mississippi River. As the Prairie State works to address decades of disinvestment in specific communities while maintaining its position as a Midwest economic powerhouse, NMTC investments bridge critical gaps in access to capital. CBO Financial specializes in structuring innovative NMTC transactions that recognize Illinois’s diverse economic landscape, partnering with manufacturers, healthcare systems, community developers, and nonprofit organizations to transform underserved areas into thriving centers of opportunity and growth.
How the NMTC Program Works in Illinois
Illinois’s robust NMTC ecosystem benefits from the state’s central location, diverse economy, and experienced network of Community Development Entities (CDEs) that understand local market dynamics. The federal program’s 39% tax credit over seven years incentivizes private investors to deploy substantial capital into Illinois’s qualified low-income communities, which include significant portions of Chicago, East St. Louis, Rockford, Peoria, and numerous rural communities throughout the state. Illinois’s economy, anchored by financial services, manufacturing, transportation, healthcare, and agriculture, provides abundant opportunities for transformative NMTC investments across multiple sectors.
The state’s transportation infrastructure, including its position as the nation’s rail hub and home to O’Hare International Airport, creates unique advantages for logistics and distribution projects utilizing NMTC financing. Manufacturing facilities, particularly those focused on food processing, machinery, and advanced materials, leverage these credits to modernize operations and expand workforce development initiatives. Urban redevelopment projects in Chicago and other cities address persistent disinvestment while rural projects support agricultural communities facing population decline and limited services. Understanding what NMTC is and its application in Illinois markets ensures projects maximize both compliance and community benefits.
Illinois CDEs have successfully deployed billions in NMTC allocations since program inception, supporting transformative projects ranging from primary healthcare facilities serving Chicago’s underserved neighborhoods to food processing plants creating jobs in rural counties. This extensive track record positions Illinois as a leader in effective NMTC utilization for comprehensive community development.
Eligible Projects and Borrowers
Illinois’s NMTC landscape encompasses diverse project types that address urban disinvestment and rural decline while fostering inclusive economic growth. Commercial real estate developments in qualified census tracts, including mixed-use properties that combine retail, office, and community spaces, represent significant opportunities for neighborhood transformation. Manufacturing and industrial facilities committed to local hiring and workforce development consistently attract strong CDE interest, particularly those in food processing, logistics, and clean technology sectors that align with Illinois’s economic strengths.
Healthcare infrastructure remains critically important across Illinois, where health disparities affect both urban and rural populations. Federally qualified health centers expanding access in Chicago neighborhoods, critical access hospitals preventing closures in rural communities, and specialized treatment facilities addressing behavioral health needs all qualify for NMTC support. Educational institutions, from community colleges developing workforce programs to charter schools serving disadvantaged students, utilize these credits to enhance facilities and expand program capacity.
Food access projects addressing Illinois’s numerous food deserts represent priority investments, including grocery stores, food distribution centers, and urban agriculture facilities. Cultural institutions that anchor community identity while driving economic activity, such as theaters, museums, and community arts centers, frequently leverage NMTC financing. Nonprofit organizations providing essential services access these resources through community development financial institution partnerships that navigate complex structuring requirements while maintaining mission focus.
Benefits of the NMTC Program for Illinois
The transformative impact of NMTC investments resonates throughout Illinois communities, generating employment opportunities that provide pathways to middle-class stability. Job creation spans construction trades during development phases and permanent positions in healthcare, manufacturing, retail, and service sectors upon project completion. These employment opportunities often target residents of distressed communities, providing not just jobs but career development pathways that build generational wealth and community stability.
Investment leverage proves particularly powerful in Illinois’s diverse markets, where NMTC equity attracts additional private capital that might otherwise flow to more affluent areas. This multiplier effect enables communities to undertake comprehensive development strategies rather than piecemeal improvements. Mixed-use developments that combine affordable housing, healthcare facilities, retail amenities, and community spaces exemplify how NMTC financing enables holistic neighborhood transformation that addresses multiple community needs simultaneously.
Quality-of-life enhancements from NMTC projects extend beyond economic metrics to include improved health outcomes from expanded healthcare access, educational advancement from better facilities and programs, and community cohesion from cultural and recreational amenities. Projects have included youth centers that provide safe spaces and programming in challenged neighborhoods, business incubators that foster local entrepreneurship, and workforce development centers that connect residents to emerging opportunities. Organizations ready to pursue these transformative investments should contact our team for project assessment.
Regulatory & State Development Framework:
Illinois’s comprehensive economic development framework complements federal NMTC programs through state-level incentives and regional coordination that maximize investment impact. The Illinois Department of Commerce and Economic Opportunity collaborates with CDEs, regional planning organizations, and local governments to align NMTC investments with broader development strategies. This coordination ensures projects contribute to statewide goals around equity, sustainability, and economic competitiveness.
The Illinois Department of Commerce & Economic Opportunity administers numerous programs that layer effectively with NMTC financing, including Enterprise Zone benefits, Tax Increment Financing districts, and various grant programs. These complementary tools create sophisticated capital stacks that enhance project feasibility while reducing overall costs. CBO Financial maintains strong relationships with Illinois-focused CDEs and stays current on state policy developments that affect NMTC structuring and deployment.
Local governments throughout Illinois provide crucial support for NMTC projects through expedited permitting, property tax incentives, and infrastructure investments. Chicago’s Neighborhood Opportunity Fund, Cook County’s economic development initiatives, and downstate communities’ aggressive recruitment efforts create favorable environments for NMTC investment. This multi-layered governmental support streamlines project implementation while demonstrating community commitment to potential investors.
Get Started
Unlock your Illinois project’s potential with strategic NMTC financing that addresses community needs while generating substantial tax benefits for investors. CBO Financial’s deep expertise in structuring complex transactions ensures your project navigates federal requirements while maximizing available state and local incentives. Our team understands Illinois’s varied markets—from Chicago’s dense urban neighborhoods to small agricultural communities—and maintains relationships with CDEs actively deploying capital throughout the state.
Whether developing a manufacturing facility in the Metro East region, creating a healthcare center on Chicago’s South Side, or establishing a food processing plant in Central Illinois, NMTC consultants’ guidelines from CBO Financial provide comprehensive support from initial conception through successful completion. Contact our team today to begin evaluating how NMTC financing can transform your community development vision into reality while contributing to Illinois’s continued economic revitalization.